Blockchain Bites: Square's Crypto Patent Posse

SushiSwap co-founder speaks and Binance's DeFi attraction
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September 11, 2020
By Daniel Kuhn
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Top shelf

Square is pushing back against crypto patents, Binance is doubling down on DeFi and what's the story with crypto's latest attempt at a backdoor public listing.

Patent posse
Square, the bitcoin-friendly payments company, is building an “alliance” to pool crypto patents and preserve the industry’s open-source spirit. The non-profit Cryptocurrency Open Patent Alliance (COPA) aims to stop companies from locking up useful technologies in patents, a practice Square says hamstrings innovation and stifles crypto adoption. Members must pledge to make their patents freely available to all other members using a shared library. 

DeFi attraction
Binance is connecting its decentralized Binance Smart Chain (BSC) to its centralized exchange (CeFi) and pumping $100 million into decentralized finance (DeFi) projects built on BSC. This “bridge” between DeFi and CeFi will essentially offer DeFi access to Binance users who don’t want to leave the exchange, CoinDesk’s Muyao Shen reports. 

Euro CBDC
European Central Bank (ECB) President Christine Lagarde said Europe has fallen behind in the digital currency (CBDC) race. Speaking at a Deutsche Bundesbank’s conference, Lagarde said a digital euro would allow the bloc to be at the cutting edge of innovation, but the lack of payments integration in Europe indicated that foreign providers have taken the lead. Separately, France’s central bank governor said a public/private partnership would be the best way to issue a CBDC to retail users.

Uniswap volumes
Uniswap topped August’s record high trading volume in the first 10 days of September, reaching $6,729,691,041 mid-morning on Thursday, leaving almost three weeks to push further into record territory. Last month’s $6.7 billion in traded volume was the leading decentralized exchange’s fourth consecutive all-time monthly high. Liquidity on Uniswap, however, has dropped by over 60% to $619 million since Tuesday as the popular SushiSwap project successfully migrated from Uniswap to FTX’s decentralized exchange, Serum.

Matching engine
Cryptocurrency exchange Bitstamp has implemented a new matching engine from Nasdaq’s technology vendor that it says greatly speeds trading. The upgrade is said to be 1,250 times faster, allowing the firm to add additional trading pairs and better manage periods of volatility. 



CoinDesk U
Have you taken a cryptocurrency course at university? Are interested in learning about blockchain for your career? What have you heard about the institutions with the best teachers, research centers, student clubs and networking opportunities?

CoinDesk is on a mission to find out which U.S. university is doing the best overall job of teaching, researching and otherwise engaging on the topic of cryptocurrency and decentralized tech. We’re gathering data on a host of blockchain-related criteria. And now we really want to know what you – the student, former student or prospective student – thinks.

Please take a moment to answer our survey. Your participation will help make this research project as a responsive and accurate as it can be.

Quick bites



CoinDesk Live: Internet 2030
CoinDesk’s “Internet 2030” series will examine the future of the medium and what role blockchain and crypto will play in it with content and conversations on the future of the decentralized web. 

The series, which features CoinDesk Live conversations on Sept. 15-16, coincides with the planned launch of the long-anticipated Filecoin mainnet, the native token for the InterPlanetary File System (IPFS) protocol. We’ll hear from Juan Benet and the Filecoin team about why peer-to-peer web storage infrastructure is critical to a free and decentralized future, and explore the array of use cases available.

Watch Day 1: Interplanetary: Filecoin Goes Live on Sept. 15 at 4 p.m. ET on YouTube, LinkedIn or Twitter. Read more here.

At stake

SPACs are back?
Earlier this week MarketWatch announced 2020 as the year of the SPAC, citing 82 firms using this “backdoor” approach to public listing to raise more than $31 billion so far. 

Another firm, Hong-Kong based Diginex, may become the 83rd. CoinDesk’s Nathan DiCamillo reports that this blockchain services firm could be publicly traded by Sept. 23. 

SPACs, special purpose acquisition companies, are used to conduct initial public offerings (IPO) and hold that capital in trust to later be put to work to acquire other companies, giving the acquiree listed status. 

Diginex, which hopes to list on Nasdaq, will merge with publicly traded 8i Enterprises Acquisition Corp., a British Virgin Islands-based company, after a final shareholder vote later this month. If all goes as planned, Diginex should bypass many of the usual regulatory barriers associated with an IPO and list on Nasdaq around Sept. 23, said Diginex CEO Richard Byworth, a former investment banker.

While a number of factors, including pandemic-induced economic uncertainty and a growing awareness of the costs of traditional listings, have cut into the IPO market, crypto has its own reasons for finding alternatives. 

INX is conducting an initial public offering live over the Ethereum blockchain, while Coinbase is reportedly looking into a “direct listing.” 

While Diginex’s EQUOS.io is certainly not a “top-tier” exchange, going public is noticeable, DiCamillo said. The Nasdaq listing would raise its profile among investors and potential customers, said George Zarya, CEO of digital asset services firm Bequant. 




How to Value Bitcoin: On-Chain Transactions
In this 30-minute webinar of our four-part How to Value Bitcoin series, we look at on-chain transactions, a concept that sounds familiar but involves novelties and complexities that are critical to understanding how bitcoin works. 

On Sept. 15 at 10:30 a.m. ET, Glassnode CTO Rafael Schultze-Kraft and CoinDesk Research will walk through the structure of a Bitcoin transaction and how transaction data determines velocity, transaction count and value transferred. Register to join How to Value Bitcoin: On-Chain Transactions.

Market intel

Struggles
Bitcoin is struggling to gather upside traction despite repeated defense of support at $10,000. The top cryptocurrency's sell-off from the August high of $12,476 looks to have come to a halt near $10,000 over the past seven days. "If $10,000 is breached, the cryptocurrency could drop to $8,100," crypto trader and analyst Josh Olszewicz tweeted earlier this week. So far, however, bitcoin's rebound has been capped around $10,500.



First Mover
First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. They follow the money so you don’t have to. You can subscribe here.

CoinDesk 20 Update: OXT In, BAT Out
The CoinDesk 20 has made its first change since launching in July: Orchid (OXT), issued by Orchid Labs Inc., developer of virtual private network (VPN) software designed to be decentralized and open source, has replaced the basic attention token (BAT) issued by Brave Software Inc., developer of the Brave browser. 

First rolled out two months ago, the CoinDesk 20 is a list of the digital assets that matter most to the market. We filter by consistent, verifiable volume, listing the 20 assets that have the most volume on trusted exchanges for two consecutive quarters. Explore the CoinDesk 20 and our methodology here.

Tech pod

Mixnets
Nym, a privacy-centric startup, will pay people in bitcoin for running its nodes. The software project’s mixnet, used to obscure metadata tracking, will now support bitcoin transactions and enable plugins for wallets and applications. One way Nym will compensate node operators is through L-BTC on the Liquid sidechain using the Blockstream Green wallet. It is also launching a reputation system, NYMPH, that lets participants keep track of which mixnodes are online and mixing data packs, even across multiple chains, CoinDesk privacy report Ben Powers said. 

Op-eds

Learning from Graeber
Shiv Malik, author, co-founder of Intergenerational Foundation and Head of Growth at Streamr, thinks DeFi proves we have learned nothing from the ICO-mania of years past. Looking at crypto markets through the lens of recently-deceased anthropologist David Graeber’s theory of debt, Malik says, “Trying to make money out of nothing by believing other people will fall for the trick is, in the end, still trying to make money out of nothing.”

Podcast corner

How Monetary Policy Undermined American Resilience
Nathaniel Whittemore looks at how the Federal Reserve’s policy of artificially low interest rates has led to the death of savings and perpetual growth machine for financial assets. 

Who won #CryptoTwitter?

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